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OTTAWA – The Liberal-dominated House of Commons finance committee is recommending the us government “provide targeted support” to regions battered by low commodity prices, and consider overhauling Canada’s tax system – although not touch current small-business tax rules.
The committee, in its budget recommendations tabled Friday, also calls around the government to examine reinstating the Kingston Prison Farm program and consider additional prison farms at areas.
Prime Minister Justin Trudeau and also the Liberal government have promised they’ll review the small-business tax rules to make sure higher-income Canadians aren’t abusing the system in an effort to lower their tax bills.
But small-business owners and their main lobby group happen to be pushing back ahead of the March 22 budget.
Dan Kelly, president of the Canadian Federation of Independent Business, which represents 109,000 small , medium-sized businesses, told the committee in mid-February that his group was “a tiny bit freaked out” the federal government was considering clawing back access to the small-business tax rate for some professionals, that could include doctors, dentists, chiropractors, accountants and lawyers.
It appears their message resonated with the committee members, who’re urging the government to not tinker with the tax rules.
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The committee recommends “the authorities not make any changes to the present federal taxation regime and other rules because they affect smaller businesses, including professional businesses, incorporated as Canadian-controlled private corporations.”
Liberal MP and committee chairman Wayne Easter tabled the panel’s final pre-budget consultation report Friday in the House of Commons, carrying out a marathon session of meetings in February that saw the committee listen to 92 witnesses and get an additional 175 written submissions from individuals and groups.
It might be too late to include a few of the recommendations in a federal budget that’ll be delivered in under fourteen days, but the report provides interesting understanding of what Liberal MPs, who hold a big part around the committee, want their government to include in your budget.
The committee can also be urging the federal government to produce an extensive review of Canada’s tax laws to make the system “simpler, fairer and more efficient.”
The authorities also should provide “targeted support” to regions experiencing “the most severe effects” from the low Canadian dollar, low oil along with other commodity prices, and slow development in emerging markets – no doubt a mention of the hard-hit energy producing provinces like Alberta, Saskatchewan, and Newfoundland and Labrador.
The government should focus these supports in areas that “would come with an immediate impact in creating jobs and assisting anyone who has lost their jobs,” the committee said.
Other finance committee recommendations include:
Examine reopening the Kingston Prison Farm and consider additional prison farms in other locations. The previous Conservative government turn off the country’s six prison farms, which saw about 300 inmates across the nation assist with things like milking cows and producing food for local communities;The government should launch a study and implement an airplane pilot project “consistent using the idea of an assured income;”Address the “negative impacts” from the Temporary Foreign Worker Program on certain sectors, including livestock and fish processing;Boost funding in a number of areas, including: airport security screening, food safety, First Nations education and drinking water, the CBC/Radio-Canada, and tourism marketing;Launch a national transit strategy with predictable long-term funding, and a national auto strategy that will keep current assembly plants open in Canada and attract brand new ones; andPursue the feasibility of the universal, national prescription medication program that has been enhanced investments in home care.
In a supplementary report, the Conservatives around the committee said the present economic situation “may justify limited measures to boost growth,” but that the spending should be targeted toward “depressed regions and economically productive infrastructure projects.”
The Conservatives urged the federal government to obtain its fiscal house in order, “prevent runaway borrowing” and steer clear of structural deficits.
“We are very concerned there will not be sufficient fiscal prudence included in the upcoming federal budget,” the Conservatives wrote in their report.
The NDP, in its supplementary report, said the Liberal government “cannot hide behind the economic situation to reduce Canadians’ expectations before tabling your budget and backtracking on its promises.”
? Email: jfekete@postmedia.com | Twitter: jasonfekete
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